How to [kindly] tell people they overpaid?

Never take the long way around the barn to get from the front to the back.

 

Log in or Sign up to hide this ad.

We're talking about a live auction? Been to many over the past few years. First thing I noticed recently is the number of people who show up with either a Red Book, or a copy of Coin World magazine. They bid based on the prices in these publications. This seems especially true for any silver coins. This started (or so it appears to me) when silver prices started rising. It hasn't let up yet. I noticed people were willing to pay well above melt value at these auctions for the chance to buy silver. Noticed it with jewelry as well. Used to be the best auctions to attend were the ones where the majority of bidders were dealers, you know if you beat them, you got a fair price (none bid over what they can make money on).

Second, don't forget about "Auction Fever". Many people get wrapped up in the bidding, and simply have to win the item. Again, not limited to coins.

Are these actually friends, or just aquaintances you met through the auctions? I have several aquaintances I've met through these venues, but would not call them friends. Many are dealers. They are a source of good advice, and good casual conversation. Are the people you refer to collectors, or "investors"?

I won't go into some of your other posts, but will offer this advice. When attending an auction (or participating in one on-line) make sure you read the terms and conditions before you bid, as this constitutes a "contract" between you and the auctioneer. Know what you want before you go, research the items, and preview them prior to the start of the auction. Set a price you are willing to pay, and don't bid over that price. And remember, there are no "friends" at an auction. They are all there for the same reason you are. To pick up items at bargain prices. The definition of "bargain" will, however, differ between bidders.

 

I agree with RickMP. I don't believe you are in the position to give advice on pricing. Neither am I. There are people on this site that have 20-50 years of experience. I'll throw this example out there. Lost Dutchman is the same age as me. We both started collecting around the same time. I was pretty serious as a 5 year old. Filling up danscos and cherry picking G4 Seated Liberty Halves. I moved to Japan and got into collecting other things (Sports Cards, and Dragon Ball Z cards). About 2 years ago I ran into a half barber with "LIB" showing, and the memories started flowing back. I got back into it, and now it is a complete obsession. The difference? LD stuck with it, and has about 20 years more experience. That is like comparing an associate’s degree, to 3 different PhD's. Could we even fathom the amount of knowledge that some CT members have like Doug, Jello, LD, 9Ball, and many others?

 

For the record, I took an approximate 20-year hiatus from the hobby beginning in the mid-60's.

Chris

 

:thumb::thumb:

Absolutely I agreed with you...:thumb::thumb::thumb:

 

I went to an auction that had a complete set of Indian cents. The 1877 was G. Most were g-vg. I planned on going 1k, maybe a bit more. It sold for $3800. There were 5 bidders still going when it topped 2000. I said nothing.

 

And just because a seller sets a price for a coin doesn't mean a buyer should pay it. Some coins are so ridiculously priced that even if you could get the seller to reduce his price by 90 percent the coin would still be overpriced. Move on.

 

It is also possible that different bidders have different sources of pricing data (Redbook, Greysheet, coin magazines, etc.) that nearly always disagree. What might be an "accurate" value for one might be totally different for another. Besides pricing guides are just that -- guides, and nothing more.

 

Frankly, after reading your posts here on this forum, I don't think you have enough numismatic experience to determine if someone has overpaid or not.
Even if they did, it's none of your business anyway.

 

It really all comes down to pride. Nobody wants to know they overpaid after the fact. At that point it just doesn't make any sense to point it out. Let them find that out for themselves.

 

I over pay sometimes, and don't fee bad. However I think there is a boundary between overpaying and being insane.

If a coin is $25 in redbook,over paying by $10 would not be bad, maybe even $15.

But if you paid $200, that's just being insane.

 

I know that people don't want to overpay for an item but I have always felt that if its something you collect, spending a little more is fine. You can't constantly think about market price, red book, grey sheet... whatever. It will drive you insane, unless you're a dealer and are into coins to make a living.
Overspending once in awhile is okay, if someone was to charge you $5 extra for a coin you really want, would you say thats a bad deal? You wouldn't, if its something you want you wouldn't mind paying a few bucks extra to get it. And besides if you're going to worry about paying an extra $40 for something because you can't buy food afterwards, you probably shouldn't be buying coins.

 

There are three ways to do things: the right way, the wrong way and my way
IMO a public auction is not a place for a numismatic tyro to be giving advice on buying coins. For that matter, it's not a place for numismatic old-timers to be handing out advice either!
Like it says on the old copper coins "Mind your business".

 

I've forgotten what I paid for most of the coins I've got. That makes it easy avoid worrying if they were overpriced or not

 

Is there a possibility that the buyers of those coins were looking for varieties, so that while it would be overpaying if it were just a common run of the mill coin, it being a variety makes it that you have a couple cherry pickers who actually are doing quite well on their purchases?

I think it is dangerous to assume that someone has less knowledge than they really have.

Here is a test, bring along some common date Morgans and let the person know that you would sell them for 45 if they are routinely paying 50 -60 for those coins you saved them money, if they know their varieties and vams and turn you down, you may be looking at a cherry picker.

 

JCB and Doug bring up a good point. It's not quantity of years in the hobbby, it's the quality of what you've done with those years that counts. Personal traits like having common sense and intelligence make a big difference too.

 

Now that just plain crazy talk!! :hail:

 

The results of Doug's suggested exercise will be interesting -- but very predictable as he says. It's the primary reason that prices rise year to year -- that buyers are generally willing to "pay too much" for what they want.